By 2015, combined spending for public and private cloud storage will be $22.6 billion worldwide, the report says.
Cloud computing will be a key driver of net new IT spending over the
next five years as public cloud service providers and the adopters of
private cloud environments invest in the supporting infrastructure,
according to a forecast from IDC. Overall spending by public cloud
service providers on storage hardware, software, and professional
services will grow at a compound annual growth rate (CAGR) of 23.6
percent from 2010 to 2015, while enterprise spending on storage for the
private cloud will experience a CAGR of 28.9 percent. By 2015, combined
spending for public and private cloud storage will be $22.6 billion
The IDC report said the most significant driver of storage
consumption over the past three years has been the emergence of public
cloud-based application and infrastructure providers. Many of these
cloud-based service providers (iTunes, Netflix, YouTube, Facebook) act
as content depots, which are primarily in the business of gathering,
organizing and providing access to large quantities of digital content.
Meanwhile, other cloud-based service providers have emerged with a
focus on delivering IT infrastructure and applications in an "as a
service" model (Salesforce.com, WebEx Connect, Amazon Web Services).
Over the past several years, these companies have undertaken massive
storage buildouts as they have expanded their service offerings,
entered new markets, and extended their geographic reach.
"Despite current economic uncertainties, IDC expects cloud service
providers - both public and private - to be among the most expansive
spenders on IT products and services as they continue to build out
their facilities worldwide and expand their service options," said
Richard Villars, vice president of storage systems and executive
strategies at IDC.
In parallel to the expansion of the public cloud, many
organizations have started to deploy their own private clouds for
application, compute, and content (archival) storage. Some of these
private cloud deployments (government and research sites) are
comparable in scope and complexity to public cloud environments, while
others are more limited in scope.
Public cloud service providers as well as major adopters of private
cloud environments have five information requirements that are driving
their current storage demands, including enabling more efficient
delivery of information/applications to Internet-based customers,
reducing upfront infrastructure investment levels, minimizing internal
IT infrastructure investment associated with unpredictable workloads
lowering and/or distributing the ongoing costs associated with
long-term archiving of information and enabling near-continuous,
real-time analysis of large volumes and wide varieties of big data.
"The challenge facing the storage industry will be to balance public
cloud service providers' demand for low-cost hardware while boosting
demand for advanced software solutions in areas such as object-based
storage, automated data tiering, Big Data processing, and advanced
archiving services," Villars said. "Big Data developments will be
perhaps the most critical new marketplace for storage solutions
providers in the coming decade. Providing a strong portfolio of
complete Big Data solutions - hardware, software, and implementation
services - will be a high priority to succeed. Similarly, a strong
portfolio of active archival storage solutions will be a critical
differentiator for private content/archive cloud deployments."